India IT Spend Forecast – 2008 - 2014

According to Gartner, India information and communication technology (ICT) spend is forecasted to reach $71. 9 Billion. By 2011, a 10.3 percent increase from 2010 spending of $65.23 billion and expected to grow with CAGR of 10.9% and reach $95 billion by 2014. Hardware (CAGR 20.4%), Software (CAGR 13.4%), IT Services (CAGR 17.1%) and Telecom (CAGR 7.9%) will drive growth in spending. CAGR is for 2009-2014. Hardware growth is driven by rise in demand of computing needs of people both in rural and urban. IT services growth will be driven by Government and defense segments, large systems integration projects for application services and managed services around IT. Software segment is expected to grow with business intelligence, middleware, database management systems (DBMS) and application development (AD) tools. Verticals like manufacturing, retail, transport and hospitality, government, telecom, financial sectors and IT services will drive IT spend growth. Chart- 1 – Source - Gartner

IDC India IT Spend forecast 2008-2013

According to IDC, from the end of 2008 to the end of 2013, IT spending will grow 11.8% a year, compared to GDP growth of 7.1% a year. Overall IT spending is expected to reach Rupees 1643 billion by 2013 with a CAGR of 11.8%. IT Hardware (CAGR 9%), Software (CAGR 15.2%) and IT Services (CAGR 16.4%) is expected to drive growth. The growth in IT spending will be driven by demand for computing by citizens, businesses and government organizations. Demand across verticals like Banking, Government, manufacturing, retail, telecom etc will drive growth in IT Spending.  IDC is expecting growth in India IT spending despite the current economic crisis and emerging markets are expected to drive growth in Global IT spending. Chart -2 Sources: IDC